SWADESHI COTTON MILLS vs UNION OF INDIA

The Supreme Court examined the provisions of the Industries (Development and Regulation) Act, 1951, particularly Sections 18A(1)(b) and 18AA(1)(a), regarding the government's authority to take over industrial undertakings. The Court held that the denial of an opportunity to be heard before such a takeover vitiates the order, establishing that the principles of natural justice must be adhered to in pre-decisional hearings. The judgment emphasized that the government's opinion on takeovers is subject to judicial scrutiny, reinforcing the importance of procedural fairness in administrative actions.